Guinn might veto bills on mortgage industry

CARSON CITY -- Two bills that would impose tighter state regulations on the mortgage banker industry in light of the Harley Harmon scheme in Las Vegas, could be vetoed by Gov. Kenny Guinn because they impose fee increases, his chief of staff said today.

Peter Ernaut said that both Assembly Bill 64 and Assembly Bill 72 are on a list of bills that could be disapproved by Guinn, in line with his policy against new taxes or fees.

Ernaut said the possible veto is based on the present form of the bills, now in the Assembly Ways and Means Committee.

The committee heard testimony Thursday that AB64 would raise more than $700,000 in fees from the industry for licensing of mortgage investment companies and agents.

Guinn's son Jeff works in the mortgage banking industry. But Ernaut said there is no conflict of interest if the governor vetoes the bill.

Guinn's son works with an industry group that supports AB64. So the governor would actually be disapproving something that was backed by his son.

"This erases any conflict," Ernaut said.

The son would have to be licensed under these bills.

"The governor was very clear he will look at any bill with a fee or tax in it. Clearly those two bills have fees," Ernaut said.

And both bills are on a list that the administration is watching. But it's premature to make a final decision until the bill reaches the governor's desk, Ernaut said.

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